...Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia H. Ibrahim* School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia haslindar@usm.my F.A. Samad Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia mfazilah@um.edu.my Received June 2009 We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non family firms. *To whom all correspondence should be addressed. Introduction The family-controlled firm or family ownership is the most common form of business organization in the world. A various stream of literature explains that family ownership is central in most countries. La Porta, Lopez-De-Silanes, and Shleifer (1999) studied the 20 largest publicly traded companies in the richest 27 countries worldwide and found most companies are private and the ownership of listed firms...
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...THE PERCEPTION OF TAXPAYERS TOWARD GOODS AND SERVICES TAX (GST) IMPLEMENTATION IN MALAYSIA CHAPTER ONE - INTRODUCTION 1.1 Backgroud of Study Malaysian taxation system is generally divided into two, which are direct taxes and indirect taxes. Indirect taxes are controlled by the Royal Malaysian Custom Department (RMCD) and it consists of four components such as excise duties, customs duty, sales tax and service tax. Direct taxes are under the control of the Inland Revenue Board of Malaysia (IRBM). The IRBM is responsible for all policies relating to direct taxes such as income tax of individual and business, petroleum income tax, real property expansions tax, and stamp duty. From the government perception, taxation is a vital economic tool because it can be employed to regulate the economy, to invigorate economic growth through the granting of fiscal incentives as a principal aim of implementing tax policies and to provide funds for development projects (JeyapalanKasipillai, 2005). The contribution of direct taxes and indirect taxes to government revenue in 2009 amounted to RM78.375 billion (49.4%) and RM28.129 billion (1 7.73%), respectively. This shows that taxation contributes more than 60% to the Malaysian government revenue. Recently, the Malaysian government established the implementation of goods and services tax (GST) to replace Sales Tax and Services Tax (SST). The GST plan was first raised in 1988 but at the time it was considered unnecessary because the sales...
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...Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning...
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...Market Income, Actual Income and Income Distribution in Indonesia 1 Kunta W.D. Nugraha PhD Candidate in Economics, Faculty of Business and Government, University of Canberra, Australia (Kunta.Nugraha@canberra.edu.au) Phil Lewis Professor of Economics, Centre for Labour Market Research, University of Canberra, Australia (Phil.Lewis@canberra.edu.au) ABSTRACT Even though Indonesia has experienced high economic growth around 5 percent since 2000, many people are still living in poverty. To be able to effectively use taxes as a redistribution tool, it is important to understand which segments of the population are most affected by government taxation. This paper evaluates household income, income tax and income distribution in Indonesia. Income distribution is measured by both the Gini coefficient and dispersion of household income groups. A broad definition of household income, including both cash and non-cash income is used to obtain more an accurate measure of actual income affecting living standards. Household income is defined as market income, net income and actual income. Transfer in-kind and consumption of own production are added on household income to obtain actual income. We find that income distribution improves after accounting for income tax and after addition of transfer in-kind and consumption of own production in household income. The results suggest that using only market income to measure income distribution in Indonesia is misleading. The results are...
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...INTRODUCTION The objective of this mini project is the study the structure and performance of national economies and the policies that governments use to try to affect economic performance. Important topics in this mini project include the determinants of long-run economic growth, unemployment, inflation, and macroeconomic policy. In addition, this mini project are also able us to know the measurement of the standard living of a country in term of productivity, efficiency and effectiveness. Besides that, we are also able to determine what is measured by Gross Domestic Product, Inflation and etc as well as know how the government policy could contribute to improved productivity of the country. The picture below shows the brief idea how does Indonesia looks like. Picture 1: Tourism in Indonesia’s island Picture 2: Place to travel in Indonesia Picture 3: City in Indonesia Picture 4: Map of Indonesia Choose one country of the world The chosen country was Indonesia. The reason of Indonesia been chosen because Indonesia is given public an image that Indonesia is a lag behind country than other since there was a tragic event happened in Indonesia in the middle of 1997 all along. This causing Indonesian suffered a great deal and many of them have experienced a very large decline in their living standard. It was irony in Indonesia’s case seen a country...
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...Comparative Corporate Governance 7-1-2003 Article 13 Corporate Governance in Malaysia Kamini Singam Recommended Citation Singam, Kamini (2003) "Corporate Governance in Malaysia," Bond Law Review: Vol. 15: Iss. 1, Article 13. Available at: http://epublications.bond.edu.au/blr/vol15/iss1/13 This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Governance in Malaysia Abstract This article examines the corporate governance system in Malaysia. A sound corporate governance system should help create an environment conducive to the efficient and sustainable growth in the Malaysian corporate sector. Since the Southeast Asian financial crisis in 1997 – 98 (‘financial crisis’), corporate governance has become a key policy issue confronting many Southeast Asian countries, including Malaysia. This article considers the distinctive problems of corporate governance in Malaysia, despite several steps for reform that have taken place since the financial crisis. There will be a brief discussion on the meaning of corporate governance and an overview of the present status of corporate governance in Malaysia, in particular after the financial crisis. Keywords corporate governance, Malaysia, Southeast Asian financial crisis This article is available in Bond Law Review:...
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...Case Background Henry Sy and John Gokongwei were both born very poor. This situation, one may conclude, served as a blessing for the two most celebrated entrepreneurs in the Philippines on their journey to wealth. Shoeless and with only clothes on his back, Henry Sy started his entrepreneurial career by tending at his father’s sari-sari store in Cebu. But Henry dreamed of something big for his future. He dreamed of having his own business to provide him enough money. In 1945, he put up a small shoe store in Carriedo, Quiapo. From then on, that humble shoe store became Shoemart (commonly known as “SM”). Since there was a constant pouring of capital back into this venture, he then expanded into textiles and household goods and was then opening outlets to selected parts of the country, centering at the Metropolis. On the other hand, John Go (“kongwei” meaning “bright” was suffixed later to his name later) started his road to success by hawking wares in Cebu. This led to his dream of building his own retailing kingdom. He first started by trading and manufacturing corn starch in 1955 and has soon expanded into supplying groceries and animal foodstuffs in bulk. Later, he ventured also in textiles, banking and real estate, hotels and shopping complex developments. The abrupt expansion of the enterprises of the two business tycoons marked the start of a period of transition for the business empire built over the past three decades by...
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...The Size and Distribution of Hidden Household Income in China Xiaolu Wang National Economic Research Institute China Reform Foundation C510 Guo Hong Building, No. A-11 Muxidi Beili Xicheng District, Beijing, 100038, China wangxiaolu@neri.org.cn Wing Thye Woo Economics Department University of California Davis, California 95616, USA wtwoo@ucdavis.edu and School of Finance Central University of Finance and Economics Beijing, China December 25, 2010 revision This article is part of a research project of the Chinese Research Society for Economic System Reform. We thank the many individuals and organizations who made this project possible. We also thank the readers of the earlier Wang (2007) study and of earlier drafts of this report for their valuable comments. We are solely responsible for the remaining mistakes in this article. 1 The Size and Distribution of Hidden Household Income in China Xiaolu Wang and Wing Thye Woo Abstract Official Chinese data on urban household income are seriously flawed because of significant underreporting of income by respondents and non-participation by the high income groups in official household surveys. We collected urban household income and expenditure data in a way that increased their reliability and the coverage of the rich. We utilized the well-known relationship between Engel’s coefficient and income level through two different approaches to deduce the true level of household income for each of the seven Chinese...
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...establishment of business facilities. Indirect regulations do influences prices on certain products. The majority of regulations in Japan protect Japanese companies from outside competition. The United States and Japan entered into an agreement in 1971 for businesses conducting trade between both countries that allow companies to avoid double taxation. Last year, Japan was devastated by a large earthquake and tsunami. The Fukushima Daiichi nuclear power plant sustained significant damage leaking radiation into the atmosphere. Fixed-income and emerging markets face the most repatriation risk. The combination of all three disasters cost Japanese insurers 30 billion dollars. Insurance firms may sell domestic assets, overseas equities, and overseas bonds to cover the cost of claims. In the event insurance company’s sell the United States treasuries, fixed-income markets are at risk. The disaster delivered strong support for the yen, considered a safe-haven currency. Repatriation of funds risk is high now but should recover as Japan recovers from the disaster (The Wall Street Journal, 2011). The research team found Fast Retailing is the most competitive company JKL will face in Japan. Fast Retailing owns the Uniqlo fashion chain. Currently Uniqlo has the biggest number of stores in Japan. Currently Uniqlo has 777 stores in Japan. August 31, 2009 the...
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...North C arolin a Polic y Wa t c h Cru cial Co nv ersa tion The Trans-Pa cific Partnership: Worse than NAFTA? Septemb er 2013 Lori Walla ch Public Citizen’s Global Trade Watch Outcomes of 20 Ye ars of NAFTA, WTO, FTAs… Crushing of Americ an Middle Class: more than 5 million US manufa cturing jobs (1 out of 4) & 60,000 US manufa cturing fa cilities gone. Millions of service sector jobs offshored: c all centers, computer, programming, engineering, a cc ounting. Wage “arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations...
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...“2006 Asian Banks Competitiveness Ranking” Report At the Request of “21st Century Business Herald” Jointly conducted by Faculty of Business Administration, The Chinese University of Hong Kong Guanghua School of Management, Peking University Written by: HE Jia, Hugh THOMAS Researchers: HE Jia, Hugh THOMAS, ZHOU Chunsheng Research Assistants: WAN Yanyan, SU Jun, MAO Tianshi Part One: Background for Asian Banks’ Competitiveness Study I. Asian Banking Reform Reform has surged across the banking industry in Asia over the last decade. In the large, insular, developing economies of China and India, the reform movement originated with internationalizing and introducing market mechanisms to stimulate previously state-owned systems. In Japan and the other traditionally market oriented Asian economies, the reform was born out of crisis. Japan’s slow and painful, a decade-long recession of the 1990s, following the bursting of the bank-financed real estate and stock markets bubbles, finally led to a consensus on the need for reform. But real urgency did not enter banking reform in Asia until the Asian Financial Crisis struck the smaller, developing, market-based economies of Asia in 1997. In the run-up to the crisis, capital inflows helped fuel debt-financed investment, while stable exchange rates and surging economic growth masked the risks of many loans to leveraged and risky companies, often based more on connections than sound credit analysis. Many...
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...pART 1 NEW ECONOMIC MODEL FOR MALAYSIA NEW ECONOMIC MODEL FOR MALAYSIA pART 1 High Income Rakyat Quality of Life Inclusiveness Sustainability NEAC National Economic Advisory Council Level 5 & 11, Menara Usahawan Persiaran Perdana, Precinct 2 Federal Government Administrative Centre 62652 PUTRAJAYA MALAYSIA NATIONAL ECONOMIC ADVISORY COUNCIL NEAC www.neac.gov.my NEAC NATIONAL ECONOMIC ADVISORY COUNCIL CHAPTRE NEW ECONOMIC MODEL F O R M A L AY S I A 1 Part I: Strategic Policy Directions Copyrights Reserved All rights reserved. No part of this publication may be reproduced, stored in retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of: Secretary National Economic Advisory Council Level 5 & 11, Menara Usahawan Persiaran Perdana, Precinct 2 Federal Government Administrative Centre 62652 PUTRAJAYA Tel.: 03-8888 6512/ 8888 6513 Fax: 03-8888 4638/ 8888 4177 Email: secretariat.neac@pmo.gov.my www.neac.gov.my Sales copies are obtainable from: Percetakan Nasional Malaysia Berhad Jalan Chan Sow Lin 50554 Kuala Lumpur Tel.: 03-9236 6888 Fax: 03-9222 4773 Email: cservice@printnasional.com.my __________________________________ Cover design and layout by Percetakan Nasional Malaysia Berhad Preface This report is the first of two documents by the National Economic Advisory Council (NEAC) on the New Economic Model (NEM). This report presents...
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...1. HISTORY In 1982, Dietrich Mateschitz learned about so-called “tonic drinks”, which enjoyed wide popularity in Asia. While he was sitting in the bar at the Mandarin Hotel in Hong Kong he got the idea of marketing those particular functional drinks outside Asia. This was not a new idea, but a variation on the Lucozade theme, another popular energy drink marketed by Smith Kline Beecham. However, Red Bull included other ingredients to achieve a different flavor. (Figure 1: Red Bull Founder- Dietrich Mateschitz) So it was that in 1984, Mateschitz founded the Red Bull GmbH company. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. Red Bull rapidly gained in popularity, giving people wings right from the start. In 1992, Red Bull touched down in its first foreign market, in Hungary. Today, Red Bull is energizing over 100 countries around the globe, such that many superstores have copied the idea with their own brand products, which invariably are inferior in one aspect or another.Red Bull, who is originally from Austria where it is still produced, distributed their energy drink in over twenty countries. Countries like USA, New Zealand, South Africa, Eastern and Western Europe. Today, the slinky 8-3-OZ can has completed its invasion into nearly every cold box in the United States. (Ohio, Tennessee and the Dakotas are among the few states without it.) In less than three years, Red Bull...
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...Table of Contents |Title |Page # | |Executive Summary |4 | |Introduction |5 | |MCB’s Products and Services |8 | |Company’s: |10-11 | |Vision | | |Mission | | |Core Values | | |Financial Analysis |12 | |Organizational Chart |14 | |Strengths and Weaknesses: |16 | |IFEM |17 | |Major Competitors ...
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...Introduction to Islamic Insurance K. M. Mortuza Ali 1 K. M. Mortuza Ali Managing Director Prime Islami Life Insurance Limited 29 Dilkusha C/A Raj Bhaban (6th Floor) Dhaka – 1000 Phone – 9560889, 9570729 (Off) 8353552 (Res) Mobile – 019-366617 Fax – 880-2-9564390 Email – plicl@bdonline.com kmortuza@bdmail.net 2 Chapter (I) Basic ideas about Risk & Insurance 1. 2. 3. 4. 5. 6. 7. 8. 9. What is Risk? How do we distinguish between pure risk and speculative risk ? How risk is handled? Why every risk is not insured? What are the characteristics of Insurable risks? What are the requisites of Insurance for Covering Risk? What are the Principles of Insurance contract? What are the different types of Life Insurance policies? How Insurance is different from Gambling? 10. What is the main function of insurance? 11. What is the greatest value of insurance? 12. What is the Purpose of Life Insurance? 13. How insurance protects value of life? 14. How life Insurance schemes meet the saving needs? 15. What are the social and economic values of Insurance? 16. What is the Actuarial principle of Life Insurance? 17. What is reinsurance? 18. What are the different methods of reinsurance? 1. What is Risk? Risk has been defined as the uncertainty as to the occurrence of an economic loss. It is the passivity of adverse result from a desired outcome. Risk and probability are not synonymous. We must understand the difference between risk and probability. The terms hazard and peril are...
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